GENERAL NEWS Fragile economic outlook
On the back of improved business and consumer confidence , declining food and energy prices and the re-opening of the Chinese economy , the OECD ’ s latest Interim Economic Outlook projects global growth to reach 2.6 % in 2023 and 2.9 % in 2024 .
Headline inflation is projected to recede gradually through 2023 in most G20 countries , from 8.1 % in 2022 to 5.9 % in 2023 and 4.5 % in 2024 . This , said the OECD , is due to tighter monetary policy taking effect , energy prices easing after a mild winter in Europe and global food prices declining .
“ However , core inflation remains persistent , held up by strong service price increases and cost pressures from tight labour markets . Inflationary pressures will require many central banks to maintain high policy rates well into 2024 ,” it added .
Annual GDP growth in the United States is projected at 1.5 % in 2023 and 0.9 % in 2024 as monetary policy moderates demand pressures . In the euro area , growth is projected to be 0.8 % in 2023 , but pick up to 1.5 % in 2024 as the drag on incomes from high energy prices recedes . Growth in China is expected to rebound to 5.3 % this year and 4.9 % in 2024 .
“ The outlook today is slightly more optimistic than our previous forecasts , although the global economy remains fragile ,” said OECD Secretary-General , Mathias Cormann . “ Some key risks , such as persistent large-scale energy and food market disruptions , have been mitigated for now . However , Russia ’ s war of aggression against Ukraine ; persistence in services inflation ; financial market turbulence and the steady decline in underlying growth prospects could be sources of further disruption . More targeted fiscal support and structural reforms to revive productivity growth will be key to optimising the recovery and long-term growth prospects .”
The OECD notes that the improvement in the outlook is at an early stage , and risks remain tilted to the downside . Uncertainty about the course of the war in Ukraine and its broader consequences is a key concern . The overall impact from monetary policy changes is difficult to gauge and could continue to expose financial and banking sector vulnerabilities and make it more difficult for some emerging market economies to service
their debts . Pressures in global energy markets could also reappear , leading to renewed price spikes and higher inflationary pressures .
“ Monetary policy needs to stay the course until there are clear signs that underlying inflationary pressures are lowered durably . Fiscal support should be prudent and needs to become more focused on those most in need to mitigate the impact of high food and energy prices . Better targeting and a timely reduction in overall support would help to ensure fiscal sustainability , preserve incentives to lower energy use and limit additional demand stimulus at a time of high inflation ,” outlined the OECD .
“ Rekindling structural reform efforts is needed to revive productivity growth and alleviate supply constraints . Enhancing business dynamism , lowering barriers to cross-border trade and economic migration and fostering flexible and inclusive labour markets would boost competition , mitigate supply shortages and strengthen gains from digitalisation ,” it concluded . n
Mathias Cormann , OECD Secretary- General ( image attribution : OECD / Creative Commons license ).
Machine-tool market to reach US $ 245 billion in 2032
The machine-tool manufacturing
Image : Kurago . industry is facing a transformative decade and as manufacturers ’ needs are more digitally focused , machine-tool builders must evolve their products to meet changing market requirements . According to global technology intelligence firm ABI Research , the machine tool market will grow by a CAGR of 4.3 % from 2022 to 2032 and reach US $ 245.2 billion in manufacturing value added .
“ This is driven by new product design by machine tool builders , particularly within facilitating the need for new machine tools , the United States , who ( due to their long old equipment reaching the end of its histories with customers ) have taken a lifecycle and requiring replacement , and new reserved approach to innovation ,” added the machine tool solutions being provided and analyst . incentivising upgrades ,” explained James Machine-tool manufacturers now realize Prestwood , Industrial and Manufacturing that more than simply providing the hardware Research Analyst , ABI Research . is needed to remain competitive , it pointed
“ The overriding challenge for machinetool builders is the split attitude about digital “ Further challenges simmer under the
out .
transformation within the industry , with a surface with manufacturers struggling to climate of complacency being propagated manage legacy equipment lifecycles and overcome uncertainty around cloud usage on the factory floor , whereas machine tool builders have to contend with redesigning their go-to-market structure away from being product-oriented to a new solution-focused design ,” highlighted Prestwood .
Digital transformation in the machine tool industry is manifesting in three mains ways : improved data coherence and availability for digital twin enablement ; software integration and support for Industrial Internet of Things ( IIoT ) use cases , including Overall Equipment Effectiveness ( OEE ) optimisation , and faster time-to-value by providing turnkey solutions that scale up or down , based on demand .
“ To keep driving digital transformation to machine tools in production processes , machine builders should be adopting solution-based business models . Technology vendors must also act as the technical bridge between the old and new forms of manufacturing and manufacturers should invest in new machines and work with vendors championing open and connected ecosystems ,” Prestwood recommended .
These findings are from ABI Research ’ s ‘ Digital Transformation in the Metalworking and Machine Tool Industry ’ technology analysis report . n
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. abiresearch . com
6 | ismr . net | ISMR May 2023